While hedging through interest rate futures reduces or eliminates the risk of loss, it also

Related MCQs

• Hedging through futures contracts
• According to --------- theory of interest, the rate of Interest is the price of credit which is determined by the demand and supply for loanable funds.
• The financial futures market has evolved over recent time because of
• A bond whose coupon rate is below the current market rate of interest will have a price:
• When maturities of liabilities and assets are mismatched and risk incurred by financial intermediaries then this risk is classified as
• Type of swaps in which fixed payments of interest are exchanged by two counterparties for floating payments of interest are called
• The type of risk in which the value of liabilities and assets is affected by the exchange rate is classified a
• According to the Fisher hypothesis, the nominal rate of interest consists of:
• A central bank which sets the short-term rate of interest must:
• Interest rate expectations have been thought to be an important influence on bond sales because: